Financial statements

Until mid-December 2018, the Bucharest Stock Exchange (BVB) was one of the best performing markets in the region, but closed 2018 with a 4.77% drop in the BET index, the main index of the local capital market, which includes the most traded 15 companies. The strong downward trend was triggered on December 19, 2018, when information on additional charges on the banking, energy and telecommunications sectors and on the modification of Pillar II appeared, followed by the BET benchmark decrease by 11.21 %, the entire growth recorded until then in 2018 by the local capital market being vanished in one single day. Between the values existing before that date, namely December 18, and the last trading session in 2018, namely December 31, the main stock market index recorded a decrease by 12%.

Romania was maintained by the FTSE Russell rating agency on the list of countries monitored for a possible reclassification from Frontier Market to Secondary Emergent Market, according to the most recent edition of the Annual Country Classification Review published on 26 September 2018. According to the FTSE Russell report, in September 2018, the FTSE Russell Advisory Committee for Country Classification changed favorably the rating regarding the permissible OTC transactions and liquidity. With regard to the MSCI global index provider, it has improved Romania's accessibility criteria to three aspects: market regulation, information flow and trading, according to the Global Market Accessibility Review published on June 20, 2018.

The first half of the year brought on Bucharest Stock Exchange (BVB) two companies listings, two bond issues, a market reshuffle, but with an increase of 11% in the total return index, and a recognition from the MSCI global index provider on the improvement of three criteria of access to the local capital market.

The Bucharest Stock Exchange (BVB) closed the first quarter with a 12.4% increase in the BET index, the main index of the local stock market, which includes the 13 most traded companies, after reaching a level of 8,816 points at the end of March, maximum of the last 11 years.

The Bucharest Stock Exchange (BVB) had one of the most dynamic years in its history in 2017, marked by the listing of four new private companies on the main market of the BVB and by the effervescence in the corporate bond segment.

The Bucharest Stock Exchange (BVB) recorded for the first nine months of 2017 a traded value on all markets of RON 10.88 bn, up by 33% compared with the same period of the previous year, the third quarter being the best quarter of the last two years. The value traded on all markets exceeded RON 4.18 bn in the third quarter, 27% above the year-ago period.

Bucharest Stock Exchange had the best quarter of the last two years, in terms of trading value in all markets, with new public offerings from private companies and new educational projects dedicated to both investors and entrepreneurs.

The report herein presents the interim condensed consolidated financial statements of the Bucharest Stock Exchange, prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, and in compliance with the rules and regulations of the Financial Supervisory Authority (FSA). The financial results as of 31 March 2017 are not audited.

Preliminary Financial Report as of December 31, 2016, presents the preliminary condensed consolidated financial statements of the Bucharest Stock Exchange, prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, and in compliance with the rules and regulations of the Financial Supervisory Authority (FSA) which determined the change in accounting policies and use of IFRS reporting starting with 31 December 2015. The financial results as of December 31, 2016, are not audited.

The year of 2015 brought a new wave of changes and measures aimed at redesigning the local capital market, with a renewed focus on creating long-term links with the entrepreneurial environment and with the retail investor community. Such efforts could not counter the increased risk aversion and amplified volatility episodes which mostly affected emerging and frontier markets, nor the lack of privatizations of state-owned companies via the capital market. In such challenging international and local context, the Bucharest Stock Exchange ended the year with a standalone net profit of RON 7 mn, down 41% y-o-y.

The Bucharest Stock Exchange remained committed to its medium-term goal of reaching the Emerging Markets status as a confirmation of the steps and measures supporting market reform and of the significant progress in removing the obstacles impeding the creation of modern capital markets in Romania. Financial results for the year mirrored these efforts, thus BVB ended 2014 with a net profit of RON 11.9 mn or RON 1.55/share, up by 25% y-o-y.

The Bucharest Stock Exchange (BVB) ended the full year 2013 with outstanding results, due to several public offers, including the largest Romanian IPO ever. Sales revenues were RON 24.3 mn, up 39.6% in year-on-year terms, while the operating profit doubled compared to 2012 and reached the best level of the last 6 years.

During a year that featured lower activity on international exchanges (noticed also at the Bucharest Stock Exchange) and also local developments, both macroeconomic and political, BVB registered a full-year net profit of RON 9.01mn in 2012, on net sales of RON 17.4mn.

Financial statements of the Bucharest Stock Exchange are showing a 66.5% increase in 2011 compared to 2010 of the sales revenues. The growing trading activity in almost all markets influenced financial statements by increasing the 2011 operating result. Dividends for the years 2007 and 2010 from the Central Depository had an important impact into the financial result.

Bucharest Stock Exchange (BVB) suceeds in getting on operating profit(EBIT) of 0.3 mil. lei on December 31, 2010, according to the preliminary individual data, compared to an operating loss of 1.5 mil. lei registered on December 31, 2009. BVB turnover increased with 5.4% in 2010, up to 13 mil. lei. (2009: 12.4 mil.lei)

Bucharest Stock Exchange reports a net profit of RON 4.4 m for H1 2010, which represents an increase with 67% yoy. Net turnover was up by 56% yoy and reached RON 8.5 m due to a singnificant rise in ADT on the main market operated by BVB.

BVB reports a net turnover of RON 4.5 m for Q1.2010 after an increase of 97% yoy. The increase was driven by the rise in liquidity on all market segments. BVB moves on operating profit of RON 1.3 m at March 31, 2010. BVB ends Q1 with a net profit of RON 2.5 m.

2009 was for sure the year of fixed instruments at BVB. Number of trades on the Bucharest Stock Exchange was close to 1,000 and the turnover was over EUR 300 m, the highest in the history of this market segment. Fixed income instruments turnover was 5 times higher than previous year turnover.

The first year of the global financial crisis led to a drop in the value of BET Composite index, BET-C, after a continuous rise since 2000. Market capitalization felt by EURO 20 bn in a single year, and the liquidity was two times lower than that of the previous year. In spite of these, BVB managed to end 2008 with a positive net profit, very close to the estimated one.

Due to Romania’s adhesion to the European Union, the year 2007 can be considered a special year for the entire Romanian community. The total market capitalization of the BVB-administered markets climbed to RON 110 bn at the end of the year, a 31% rise from last year, and the total turnover of 2007 exceeded RON 18 bn, almost 70% higher yoy. Market capitalization and the market turnover established in 2007 the record heights for the modern history of BVB. The intensification of trading activity on the Floor of BVB has been reflected in the financial performance of the BVB as a market operator. Total earnings recorded by the BVB have amounted RON 54.2 m, while total expenditures have been kept under RON 20 m mark, which leads to a net profit of RON 29 m.

Market capitalization of BVB was EUR 21 bn at the end of 2006, an increase of 40% yoy. In 2006 were established new liquidity record heights. In 2006 BVB reported a gross profit of RON 19 m, obtained exclusively from the operating activity. Net turnover in 2006 was RON 30.4 m.